Mr. Randy Kowalchuk, President

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October 20, 2017 #201, 8506-200th Street, Langley, BC V2Y 0M1 T: 604.371.0091 F: 604.371.0098 Our Reference: 31931 Naramata Benchland Properties 176 Fraser Court, Penticton, BC V2A 8B4 Attention: Mr. Randy Kowalchuk, President (randy@naramatabenchlands.com) Dear Sir, Reference: Traffic Impact Assessment Study for Proposed Arawana Benchlands Properties (Phase 3) at 3498 Arawana Forestry Road in Naramata 1.0 Introduction 1.1 Background ISL Engineering and Land Services (ISL) was retained by Naramata Benchland Properties to undertake a Traffic Impact Assessment (TIA) study for the proposed Arawana Benchlands Properties (Phase 3) development at 3498 Arawana Forestry Road in Naramata (Electoral Area E ), British Columbia. The study findings will be used as part of a development permit application (Land Use Bylaw Amendment Application) submission to the Regional District of Okanagan-Similkameen (RDOS). The 35-arce parcel adjacent to Arawana Forestry Road with current development rights of 41 units is proposed to be rezoned from rural small holdings to low density residential. The Arawana Benchlands residential development will be located along the Arawana Creek and at the northeast area of the Flagstone Rise and Arawana Forestry Road intersection. The property is currently a vacant land, neighbouring low density single-family houses, bed and breakfast lodging, parks, recreational spaces and agricultural operations (wineries, distillers, vineyards, etc.), and conservation areas all on the southwest side. It is understood that both Phase 1 and 2 of the Arawana Benchlands residential development, which are in close proximity to Arawana Forestry Road and the proposed Phase 3 development, have sustainably completed. Based on the land use information and site plan layout (dated January 2017), the existing lot is proposed to develop into 56 single-family and 12 two-family (duplex configuration) houses, totalling 80 dwelling units. Two new roads will also be provided and connected to Arawana Forestry Road from the southeast side. 1.2 Study Objectives The objectives of this TIA study are to: conduct the latest traffic counts (as of 2017) on Naramata Road and Arawana Road; determine the existing and future (2020 and 2025) traffic volumes and patterns; reflect the change in traffic conditions since the previous Traffic Impact Assessment for the Proposed Naramata Benchlands Development Report in September 2005 (2005 TIA Report); estimate traffic generated by the proposed development; analyze the traffic performance of the study intersections and roadways; and, develop recommended improvement measures, if required. ISL Engineering and Land Services Ltd. islengineering.com ISL is proud to be Bullfrog Powered A Green 30 Employer One of Canada s Best Small and Medium Employers

1.3 Study Area Upon telephone discussion with RDOS staff as well as in reference to the 2005 TIA Report at the beginning of this study, the following roadways and intersections were identified (with the existing intersection control types as indicated in the brackets): Naramata Road Arawana Forestry Road Gawne Road and Naramata Road intersection (STOP-controlled) Arawana Road and Naramata Road intersection (STOP-controlled) Naramata Road is the major roadway, located west of the proposed development, connecting Naramata Town Centre and the City of Penticton. The road is a two-lane north-south roadway (one lane each direction) with shoulders on both sides, intersecting east-west streets such as Arawana Road and Gawne Road. Arawana Forestry Road, Arawana Road, and Gawne Road are two-lane roadways (one lane each direction) with limited or no shoulders. Naramata Road at Arawana Road and Gawne Road are both T-intersections, controlled by STOP signs on the east legs. Naramata Road has a posted speed limit of 60 kilometres per hour (km/h), while Arawana Forestry Road, Arawana Road, and Gawne Road have 50 km/h speed limits. To further understand the study area regarding existing traffic and road conditions, ISL staff conducted a site visit in the afternoon of September 2017 and relevant site photos are shown in Figure 1. Naramata Road (facing south) Arawana Forestry Road (facing south) Gawne Road / Naramata Road (facing north) Arawana Road / Naramata Road (facing south) Figure 1 Photographs of the Study Roadways and Intersections During the site visit as well as following traffic surveys, it was found that roadworks for the Naramata Water System Rehabilitation Project were being performed on Naramata Road. A traffic control person (flagger) was directing most northbound traffic (particularly passenger vehicles) to turn right on Gawne Road as part of the construction detour. According to the latest RDOS notice (July 2017), original Naramata Road northbound traffic is directed to the Arawana Road and Naramata Road intersection, through Gammon Road, to either turn right to continue northbound towards the Naramata Town Centre or left to access the side streets/driveways between the two study intersections. The detour will be in effect from 0700 to 1900 hours, Monday to Saturday, until the end of November 2017. Therefore, the surveyed turning volumes will be adjusted to reflect the expected intersection movements for normal traffic conditions (without the construction and detours). Page 2 of 13

2.0 Existing Traffic Conditions 2.1 Study Roadways Traffic volumes, spot speeds, and vehicle classifications on two study roadways were collected by 24-hour tube counters for an entire week from September 12 (Tuesday) to 18 (Monday) of 2017. The automatic vehicle counters were installed on Naramata Road, north of McMillan Avenue / Reservoir Road (alternative survey location as compared to the one in the 2005 TIA Report due to the construction work) and Arawana Forestry Road, north of Arawana Road (direct route to/from the proposed development), recording two-way traffic characteristics by 15- minute intervals. 2.2 Traffic Volumes On average, the traffic data indicated that daily traffic volumes on Naramata Road were about 3,050 vehicles during the weekday and 2,790 vehicles during the weekend. On Arawana Forestry Road, the average daily traffic volumes were about 180 vehicles during the weekday and 140 vehicles during the weekend. The hourly traffic distribution on average weekday, Saturday, and Sunday for both study roadways in each direction could be found in Figure 2. The observed weekday AM peak hour was found to be from 0800 to 0900 hours (8:00 to 9:00 AM) and the observed weekday PM peak hour was found to be from 1500 to 1600 hours (3:00 to 4:00 PM). Figure 2 Hourly Traffic Volume Distributions on the Study Roadways Traffic volumes along Naramata Road, from the Spiller Road / Reservoir Road Neighbouhood Concept Plan Memorandum (February 2014) for the City of Penticton, were also collected and reviewed. It is noted that the south end of Naramata Road has similar traffic patterns as the latest surveyed data during both peak hours; however, the 2017 counted traffic volumes are generally higher than the 2014 data. Page 3 of 13

As shown in the hourly distributions (Figure 2), the overall weekday AM/PM trends for both directions of Naramata Road represent commuter traffic (work/school trips), similar to the findings of the 2005 TIA Report. A higher number of vehicles travelled on Naramata Road during the weekend (Saturday and Sunday) peak periods and may be related to the tourist traffic. Moreover, a large differential in hourly traffic volumes for Arawana Forestry Road were observed. It could be explained as local drivers (generally for retired, senior, and/or recreational users) travelling to/from the local community (wineries, distillers, vineyards, bed and breakfasts, etc.) as well as tourist vehicles that might not travel in a set schedule regardless of whether or not it is a weekday or weekend. 2.3 Spot Speeds The spot speed for each surveyed vehicle was also recorded from the 24-hour tube count survey along Naramata Road and Arawana Forestry Road. The frequency distribution curves for two study roadways for both directions (Figure 3) were identified by individual and cumulative percentages, identifying the posted speed limit and 85 th percentile speed (consider operating speed). Figure 3 Spot Speed Frequency Distributions on the Study Roadways The results indicated that most of the surveyed vehicles were travelling between 50 to 70 km/h, plus/minus 10 km/h as compared to the posted speed limit on Naramata Road. The average travelling speeds for both directions were found to be approximately 60 km/h, consistent with the posted speed limit. It is found that the overall speed distributions were lower by 10 km/h when compared to data in the 2005 TIA Report. The slight discrepancies of the speeds could be partially explained by the difference in location as well as road grade. Page 4 of 13

For Arawana Forestry Road, the majority of surveyed vehicles were travelling at speeds less than 65 km/h. On average, the travelling speed was found to be 50 km/h, again consistent with the posted speed limit. The difference in speeds on Arawana Forestry Road could be attributed to a number of factors, including road surface condition (currently gravel), steepness, rural characteristics etc. Overall, most vehicles travelled similar or over the posted speed limit. It is likely that Naramata Road and Arawana Forestry Road will have excellent traffic conditions. 2.4 Vehicle Classification Based on the tube count survey results, the vehicle classifications (cars and trucks) were identified for both study roadways. As shown in Figure 4, majority of the vehicles travelling on both directions of Naramata Road was passenger vehicles (98% of total volume). The remaining 2% were identified as trucks, including buses and all vehicles with three or more axles. Similarly, 97% of total volume in both directions of Arawana Forestry Road were passenger vehicles. Similar to the 2005 TIA Report, high percentages of passenger vehicles are consistent with the residential community. 2.5 Study Intersections Figure 4 Distributions by Vehicle Classification on the Study Roadways Traffic count data for the Gawne Road and Naramata Road intersection was also collected through classified (cars and trucks) intersection turning movement surveys on Tuesday, September 12, 2017. The traffic counts were conducted at 15-miniute intervals during the peak periods of weekday AM (from 0700 to 0900 hours) and PM (from 1500 to 1800 hours). The observed weekday AM and PM peak hour were identified to be similar as the tube counts. The surveyed (2017) peak hour traffic volumes are summarized in Table 1. As the Arawana Road and Naramata Road intersection is greatly affected by the construction work (affecting both north and south legs), it was decided that location would not be conducted for traffic counts during the study period. Table 1 2017 Surveyed Traffic Volumes Gawne Road at Naramata Road Study Intersection Peak Period Westbound Northbound Southbound Left Through Right Left Through Right Left Through Right Gawne Road at Naramata Road AM 52-0 - 15 92 1 149-309 Gawne Road at Naramata Road PM 42-1 - 13 193 1 147-397 Total As mentioned in previous section, due to construction, it is anticipated that the surveyed turning movements might not reflect typical traffic turning proportions. Based on the overall intersection traffic patterns (2005/2017), it is found turning proportions were still similar within the study area; hence, northbound and westbound traffic were redistributed as per the 2005 TIA Report. Furthermore, the 2005 traffic data of the Arawana Road intersection was used and projected (based on the traffic growth from 2005 to 2017, 25% increase) for the Gawne Road intersection to estimate the 2017 existing traffic volumes, As shown in Figure 5, northbound and southbound through movements on Naramata Road have the heaviest traffic volumes. The 2017 existing traffic volumes was used for the traffic operation analysis as base conditions during all scenarios. Page 5 of 13

Figure 5 2017 Existing Peak Hour Traffic Volumes Page 6 of 13

3.0 Proposed Development Traffic 3.1 Trip Generation To forecast trips (inbound and outbound traffic) generated from the proposed development during both weekday AM and PM peak hours, the Institute of Transportation Engineers Trip Generation Manual 10 th Edition (ITE Trip Manual) was used. As per the 2005 TIA Report, it is anticipated that most of the potential buyers will be non-commuters (retired, recreational, and/or part-time users) similar to the surrounding neighbourhood as well as on the location of the proposed development and limited future employment opportunities. Traffic generation rates for Senior Adult Housing Attached is proposed for the 24 units (duplexes). However, for conservative measures, 56 out of 80 total residential units will be proposed with the land use of Single-Family Detached Housing (assuming commuters), which has higher trip rates than other appropriate options such as Senior Adult Housing Detached, Continuing Care Retirement Community, or Recreational Homes. Table 2 shows the summary of land use codes and trip rates identified in the ITE Trip Manual. Table 2 Vehicular Trip Generation of the Proposed Development (2020 and 2025) Land Use Residential - Single Residential - Duplex Classification (Land Use Code) Single-Family Detached Housing (210) Senior Adult Housing - Attached (252) Unit Dwelling Units Dwelling Units Extent 56 24 Total 80 Peak Period Two- Trip Rate Way Trip Directional Split Total Trip In Out In Out AM 0.74 42 25% 75% 10 32 PM 0.99 56 63% 37% 35 21 AM 0.20 5 35% 65% 2 3 PM 0.26 7 55% 45% 4 3 AM 47 12 35 PM 63 39 24 Inbound and outbound traffic volumes for the peak hours indicated that during the weekday AM peak hour, a total of 47 vehicle trips will be generated (12 inbound and 35 outbound) while during the weekday PM peak hour, a total of 63 trips will be generated (39 inbound and 24 outbound). 3.2 Trip Assignment and Distribution Using the existing traffic patterns at the study intersections, generated vehicular trips were distributed accordingly and assigned to the existing road network during the 2020 (opening year) and 2025 (future scenario) horizon years. It is expected that trip distributions (inbound and outbound) and assignments for both weekday AM and PM peak hours will be similar. For the location of the proposed development, it is estimated that generated traffic will mainly travel/commute to/from south City of Penticton (75%). The remaining 25% will travel to/from north Naramata Town Centre (25%). More specifically, it was assumed that vehicles would enter/exit the development site and local roads with the following distributions/assignments: 75% of the vehicles will access the north study intersection through Arawana Road (50% to/from the south and 25% to/from the north) 25% of the vehicles will access the south study intersection through Winifred Road / Noyes Road / Mariposa Road, Gammon Road, and Gawne Road Figure 6 indicates the estimated trip distributions of each turning movement at the study intersections/roadways as well as generated vehicle trips during both peak hours. 3.3 Future Traffic Volumes Two horizon years were considered in this TIA study, including expected full build-out year of 2020 and projected year of 2025 (five years after full build-out). To include background traffic growth around the study site that is not generated by the proposed development, a linear annual growth rate was estimated in this study. Page 7 of 13

Based on total intersection traffic volumes from the 2005 and 2017 surveys, an annual growth rate of about 2.1% was found at the Gawne Road and Naramata Road intersection. According to the available 2005 and 2016 monthly distributions from the nearest count station (26-027NS) on the Highway 97 / Eckhardt Avenue West bridge (major regional connection to/from Naramata) in Penticton from the British Columbia Ministry of Transportation and Infrastructure, an annual growth rate was found to be about 1.8%. With assessing the traffic growth in the study area and the neighbourhood area, it is estimated that an annual traffic growth rate of 2.0% be reasonable for the next 10 years and was applied for this TIA study. 3.4 Combined Traffic (2020 and 2025) The 2020/2025 background traffic were combined with the proposed development traffic to obtain the estimated 2020/2025 combined traffic volumes for both weekday AM and PM peak hours. The combined traffic volumes for year 2025 during both peak hours are shown in Figure 7. At the study intersections on Naramata Road, the generated (proposed development) traffic is expected to constitute about 8 to 10% of the total intersection entering traffic volumes in 2025 during both peak hours. 4.0 Traffic Operation Analysis 4.1 Measures of Effectiveness Traffic operation performances were analyzed using Synchro 9 Software and Highway Capacity Software 2000, which are both based on the standard methods of the Highway Capacity Manual (HCM). In HCM, measures of effectiveness were developed including average control delay (second per vehicle), which reflects the Level of Service (LOS). As shown in Table 3, LOS defined based on the delay for unsignalized intersections is provided. In traffic operation analysis, LOS D or better is generally considered as the acceptable LOS for STOP-controlled intersections. The results are summarized in the following sections and the output could be provided upon request. Table 3 LOS Definition for Unsignalized Intersections in HCM Traffic Control LOS A B C D E F STOP-Controlled Delay (sec/veh) 0-10 10-15 15-25 25-35 35-50 >50 Existing (2017), base (2020/2025 without development traffic) and combined (2020/2025 with development traffic) traffic operations were analyzed with results summarized by peak hours and horizon years. For study intersections, the overall and individual intersection LOS are shown. Traffic operation of the study roadways were also analyzed under the consideration of two-lane two-way (one lane each direction) and class II (primarily used for relatively short trips or beginning/ending portions of longer trips) with the associated posted speed limits (50 or 60 km/h). 4.2 Existing Traffic Operation (2017) Analysis results for the 2017 existing conditions are summarized in Figure 8. It is found that under the 2017 existing conditions, all study intersections and roadways operate at acceptable conditions (LOS A or B) during both weekday AM/PM peak hours with no capacity issues. 4.3 Base/Combined Traffic Operation (2020 and 2025) The 2020 traffic analyses were undertaken to determine and compare the traffic performances in the opening year without the proposed development (base) and with the proposed development (combined). Summaries of the 2025 traffic performances (very similar to the 2020 scenarios) at the study intersections and roadways in the combined condition is illustrated in Figure 9. Analyses results indicated that all study intersections will continue to operate under acceptable conditions (LOS A or B) for overall and individual movements during both peak hours, both base and combined conditions, as well as both horizon years. No capacity deficiencies are identified for the study intersections and roadways. Therefore, no capacity improvements are required even with the additional traffic generated by the proposed development. Page 8 of 13

Figure 6 Generated Traffic Volumes (2020 and 2025) Page 9 of 13

Figure 7 2025 Combined Peak Hour Traffic Volumes Page 10 of 13

Figure 8 2017 Existing Peak Hour Traffic Performance Page 11 of 13

Figure 9 2025 Combined Peak Hour Traffic Performance Page 12 of 13

5.0 Conclusions This Letter Report summarizes the study findings for the proposed Arawana Benchlands residential development at the northeast corner for Flagstone Rise and Arawana Forestry Road intersection in Naramata, British Columbia. At the full build-out (anticipated in 2020), the proposed development could potentially result in 56 single-family and 24 two-family (duplex) residential houses, totalling 80 dwelling units, along Arawana Forestry Road. Two new roads will be provided and connected to Arawana Forestry Road from the southeast side. Existing traffic volumes at the study intersection and roadways were collected with the traffic surveys undertaken in September of 2017. Spot vehicle speeds and vehicle classifications were also collected and reviewed. Trip generation analysis indicated that a total of 47 vehicular trips (12 inbound and 35 outbound) are projected to be generated during the weekday AM peak hour, and a total of 63 vehicular trips (39 inbound and 24 outbound) will be generated during the weekday PM peak hour. Traffic conditions for weekday AM and PM peak hours were analyzed for the horizon years 2017 (existing), 2020 (full build-out), and 2025 (five years after full build-out). It is noted that the development traffic makes up about 8 to 10% of the intersection entering traffic volumes at study intersections during both peak hours in the year of 2025. Based on the traffic operation analyses, two study intersections (Arawana Road and Gawne Road at Naramata Road) and the two study roadways (Naramata Road and Arawana Forestry Road) are projected to operate under the acceptable conditions (Level of Service LOS A or B) during both peak hours (weekday AM and PM peak), both traffic conditions (base and combined) and all horizon years. Therefore, no capacity improvements are required with the additional trips from the proposed development. The existing road network in the surrounding area can safely and efficiently accommodate the traffic generated by the proposed Arawana Benchlands Properties (Phase 3). We trust this Letter Report fulfills the Regional District of Okanagan-Similkameen requirements. If there are any questions or further information is required, please do not hesitate to contact the undersigned. Yours truly, Alvin Tse, E.I.T. Traffic / Road Safety Engineer Borg Chan, P.Eng., PTOE, FITE Manager, Traffic Engineering and Road Safety cc: Bob Evans, RPP, MCIP, FCSLA, National Strategy and Business Development Leader, WSP (Bob.Evans@wsp.com) Page 13 of 13